LIST OF BRANDS1. Benefit Cosmetics 2. Christian dior3. Too faced4. Bare minerals5. Lancome6.
Tarte7. Urban decay8. Black Radiance9. youniqueSECTION 11. Consider your brand’s product in terms of the attributes that customer’s value. Select four attributes of importance to customers and draw two perceptual maps (2 attributes on each map.) (2M) 2.
Identifying between 8-10 indirect and direct competitors and place them on the perceptual maps illustrating where each is positioned relative to the other based on these attributes. (2 marks) NB: You can use your competitor analysis from Tutorial Assignment three for this exercise but you will need to find additional competitors. 3.
Positioning and Differentiation In 500 words or less, explain the position of your company or brand by showing how it is differentiated from each of the competitors you have included above. (2 marks)Brand positioning is a process of differentiation the brand in order to position it in the target market’s minds (Angela, 2018). Benefit Cosmetics LLC had implemented an effective marketing strategy in order to compete with other competitors in the cosmetics industry.Firstly, they are very popular with their makeup collections that offer a wide range of neutral colours palettes other than their eyebrow products.
Most of their makeup palettes are in neutral colours even though most of the makeup brands are offering the daring colours. This is because the neutral colours represent the identity of this company, which believes that laughter is the best cosmetics (Somer, 2011). So, they believe that each woman only have to look minimal in order to stay beautiful. This colour selection can be an identity for Benefit Cosmetics, which makes them different from other brands. Secondly, this company also chose to provide an attractive packaging design in marketing their products. The designs from this company are usually in pastel and cheerful colours. The packaging designs from this cosmetics company are very different from its competitors.
Most of its competitors such as Lancome offer a typical design in black packaging. It can be seen that this company had successfully present their products in a fun and unique way.Thirdly, according to Ulta Beauty (2018), there are many good reviews of Benefit Cosmetics. There are many good reviews from the customers said that their makeup lines are easy to apply. These reviews have shown that this company offers the high quality products, which corresponds to the price. It can be seen that the cosmetics produced by this company are based on the right formula. Furthermore, this company gains advantages from the customers through the word-of-mouth communication (WOM).
This brand does not have to spend on selling expenses since the customers had already promoted their products.Lastly, this brand also had gained strong recognition from their customers and the public. There are around 8 millions of followers on the official Instagram page, 950 000 of followers on Twitter and 6 million likes on Facebook. These show that this brand is already stable in the market and has high potential to achieve on a higher level in the future. Since the public had acknowledged the existence of their brand, this company can use this opportunity to continue promote their products on the social media platforms and produce more makeup collections. SECTION 21.
Using appropriate segmentation bases e.g. demographics, geographic, lifestyle, ethnicity, values, opinions and interests (and any others you may wish to use) describe the current target market(s) of your company (2 marks) COMPANY Benefit Cosmetics LLCPRODUCTWide range of makeup lines for brows, eyes, face, lips, makeup kits and accessories like brushes.DEMOGRAPHICSBenefit Cosmetics LLC is based in San Francisco, United States. The current target market for this company is the working career women who receive income monthly. The population of this city is around 860 000 of people (World Population Review, 2018). This city is made up of 400 000 of females and their average salary is $ 56 697 (Data USA, 2016). 86% of females in United States are aged between 25 to 64 years old (Statista, 2017).
There are an Approximately 40% of American women who are working in professional sector (Status of Women in The States, 2013). There are around 100 000 of females Bachelors Degree holders (World Population Review, 2018).LIFESTYLEBased on Newswire (2015), it can be seen that Americans are following the advancements of technology. This is because 78% of the citizens are using smartphones and half of the population bought the tablets. They use social media as the medium to stay connected with each other and 85% of them also use their smartphones while watching televisions.
An approximately 70% of American beauty consumers who are mainly from female believe that they need to look presentable whenever they are in the public. Furthermore, almost all consumers from this group agreed that the application of makeup could make them feel and look more confidence (Mintel Press Office, 2016). Furthermore, American women also spend an average of $115 per month on makeup (SWNS, 2017). The percentage of annual expenditure in hygiene and beauty in San Francisco is almost 1.2% (Tracey, 2015). Americans also spend around $8 billion every year on cosmetics (World Watch Institute, 2018). ETHNICITYThere are many different types of ethnicities in San Francisco, which include White, Asian, Hispanic, Black and other.
According to Department On The Status of Women (2014), population in San Francisco are made up of 40% of White, 34% of Asian, 15% of Hispanic, 6% of Black and other ethnicity is 4%. There are 22% of male and 18% of female in White group, 16% of male and 18% of female in Asian group, 8% of male and 7% of female in Hispanic group, 3% of male and 3% of female in Black group and 2% of both male and female in other ethnicity group (Department On The Status of Women, 2014).Describe the (or one major) current target market of your company/brand /product on the bases of these segmentation toolsCompany: Benefit Cosmetics LLC Brand/ Product: Demographics Geographic Lifestyle Values Opinions Interests Other(s) (please specify) References :2. Using a Market Development approach, i.e. the company wishes to market the same products to new markets, in 500 words or less, complete a profile that describes at least one viable new target market segment your company should pursue.
(5 Marks) Make sure you consider whether the size of your chosen target market is large enough to be of benefit to your company and how your company can offer value to the new target market. • Market Development – this strategy means that a company attempts to sell more of the same product to new markets. Definition of market development New markets; men and teenagers Why ? population of men, men spends on skincare, makeup artist from men, fashion designer during fashion show, men jaga penampilan Why ? population of teenagers, always to look fab n beautiful, Market development is one of the marketing strategies used by a company to maximize the sales. The company will implement this marketing strategy by selling the existing products to the new group of target markets (Market Business News, n.d.). Benefit cosmetics can implement this method in their company by expanding the new target markets, which are the working career men who received income monthly and the teenage girls.
This company can target men as their new target market because there are around 413 000 of male population in San Francisco (Data USA, 2016). The figure shows that the new target consumer group is big and this company has the high chances to develop its brand. Furthermore, the risings of male vloggers such as Jeffree Star, Patrick Charles and Patrick Starr who vlog about make up tutorials have shown that men have developed an interest in grooming.
According to The Conversation (2018), 11% of the viewers for these types of videos are male and around 20% of them are teenagers who are aged below 17 years old.Next, according to Hong Kong Means Business (2016) stated that there are 68% of men who wear makeup every day and on several occasions. It also stated that 59% of the makeup users are young men who want to look more confidence and presentable while others are wearing makeup for beauty purposes.
This company also can aim teenage girls as their new group of consumers since teenage girls made up almost half of the adolescents group in America (U.S. Department of Health ; Human Services, 2014).
Furthermore, the active users of the social media are in the aged group of 16 to 24 years old (Smart Insights, 2018). This company can take this as an opportunity to attract the aged group since they implemented digital marketing to market their products.The new target customers who are the teenage girls will acknowledge the latest updates about their products through the posts on Instagram and Facebook. In addition, this type of group are more familiar with the online shop and they can visit the official website of this company. Moreover, this target group of consumers has the high probability to stay loyal with this brand.
The number of customers and the profits of this company will increase. Benefit Cosmetics is suggested to encourage more teenage girls to start using their products at the young age, so that they can stay loyal and stay young with this brand. Next, this suggestion can realized by promoting the trial kit makeup that are produced by this company to this type of target market. The company could promote the trial kit collections in 34 different products.In conclusion, Benefit Cosmetics can gain many advantages by targeting these new groups of consumers. There are many strong reasons that can make these groups as their new target market such as beauty concerns and technology expertise.
Section Three – 7 MARKSUsing a product development approach, (the company sells a new product or innovated product to the same target market) or a diversification approach (the company sells a new or innovated product to a new target market) discuss the following (in 1500 words or less) How should your company change the product (including its packaging) to:a) better appeal to its existing and new customers, and b) differentiate itself from its competitors more clearly. Make sure you justify your answers thoroughly and do not discuss either price or quality as part of Diversification – means a company will sell completely new products to new markets. SECTION 3• increase foundation shades since there are many different ethnicities in US for both trial kit and normal size products• SHADES ARE LIMITED• formalised products that are suitable with men• packaging that represent manly, masculine simple at the same time exclusive• formulated products so that they are suitable with the teenagers’ skins• increase the trial kits so that many people can try Even though product innovation for ethnic skin is low, representation seems to be growingBenefit Cosmetics is recommended to implement diversification method in their business. Diversification is the creation of new products by a company to sell them to the new target markets (Shital, n.d.). The aim of diversification method is to compete with the competitors in the market other than maximize the profits.
Benefit cosmetics is recommended to create the new makeup lines that are not just cover the flaws on the consumers’ faces but at the same time improve their skin complexions. They can start creating and introducing this type of product to the customers since there are no such products in their makeup collections. Furthermore, this type of makeup also can help the customers to achieve the flawless and healthy skin. This brand will get strong recognition from the new target markets if the makeup products work on consumers’ skin and at the same time increase the revenue. Furthermore, since all the new target consumers are concerned about beauty and appearance, they will be more interested to try this type of multipurpose makeup, which can make them look beautiful while improve their skin conditions.Benefit Cosmetics can sell the new products that are mentioned above by designing different type of packaging, increase more shades in their collection, Firstly, since the new target markets are from men, this company might consider to formulised their new makeup lines so that it will be more suitable with men’s skin. They need to spend more on research and development because they need to decide which ingredients can give the best results on men’s skin.
The suitable ingredients on the products can make the makeup works well on their skin and give the satisfactory results. Also, this company is suggested to add the new packaging, which represent manly and masculine characteristics in order to attract more male customers. The simple and exclusive design will also help the customers to remember about this brand.Secondly, this company also needs to add more shades in their new makeup products such as foundation due to the different type of ethnicity groups such as Asian, Hispanic and Black in America. According to Vanessa (2018), most Black women in America always feel disappointed because the cosmetics companies usually do not cater the suitable shades of foundation for their skin colour. They also feel like they are being discriminated as the companies do not acknowledged their presence in the beauty industry. There are some situations, where this group of consumers need to buy different shades of foundation and mixed them together, so that these colours will match on their skin (Andrea, 2015).
Benefit Cosmetics has to make sure that the provided shades can fulfill the consumers’ demands because different skin colours required different shades of foundation. The wide range of shades can attract more customers to buy their products. Besides, customers who are always struggle to find the right shades of foundation for their skin will feel more appreciated. As a consequence, they will stick to this brand and may recommend it to their friends. Thirdly, since teenage girls are also the new potential group of buyers, this company needs to formulised their new products, so that they will be suitable for their skin. Based on an article written by Manney (2017), makeup has negative effects on teenagers’ skin since it can trigger more acne to grow. The different and imbalance hormones on teenagers’ body also can be one the factors that can contribute to the growth of acnes. The company has to make sure that all the ingredients in the makeup are safe for them especially for those who have sensitive skin.
Lastly this company also is recommended to produce their new products in both normal and trial set. Even though, they have offered trial sets to the customers, but these sets are only available for certain products. The limited size of products can lead to the decrease in sales because some new customers might prefer to buy the trial set since it is their first time using this product. They can decide to buy the whole range of set later if they see the positive improvement on their skin after using these products. The trial set also can be the attraction for the customers who prefer to bring the small size of products during short vacation or getaway. The different size of products offered can stimulate the number of customers to purchase the products from this brand.ReferencesS. Angela.
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